Journal Review

A form for recording transactions in chronological order is called a ledger.

• True
• False

A journal entry consists of the date, debit, credit, and source document.

• True
• False

Memorandum is another term for sales invoice.

• True
• False

When cash is paid for insurance, Prepaid Insurance is debited while Cash is credited.

• True
• False

Buying supplies on account and paying cash on account affect the same two accounts.

• True
• False

If no account titles need to be written for a transaction, a check mark should be placed in the Account Title column.

• True
• False

The source document Sale Invoice No. 1 is abbreviated S1 in the Doc.No. column.

• True
• False

Paying cash to the owner for personal use debits both Drawing and Cash.

• True
• False

Proving a journal page verifies that the total debits on the page equal the total credits.

• True
• False

Double lines are ruled across all amount columns to indicate that the columns are to be added.

• True
• False